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A 20 year bond with a par value of $10,000 matures in 20 years for $10,500 (i.e. its redemption amount is $10,500). The coupon rate
A 20 year bond with a par value of $10,000 matures in 20 years for $10,500 (i.e. its redemption amount is $10,500). The coupon rate is 8% convertible semiannually. You bought this bond at a yield rate of 6% convertible semiannually. (a) After five years right after the 10th coupon is paid, what is the book value of this bond (the present value now of all the future coupon payments and the redemption under the original yield rate)
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